1. Structure and Design of Organizations
Peter Drucker: While a poor structure makes a high performance impossible, the best structure in the world will not ensure good performance

2. Organization structure
The way component parts and activities are grouped, controlled and coordinated to achieve specific aims and outcomes.
How jobs tasks are formally divided, grouped and coordinated
Structure is a means for attaining the objectives and goals of an organization

3. The Organization Chart
The chart is an illustration in box and-lines informing about the formal lines of authority and the division of labor.
The Vertical Hierarchy of Authority: A glance up and a glance down shows the chain of command
The Horizontal Specialization: A glance to the left and right on the line of an organization chart shows the different jobs or work specialization

4. Chart—Example for a Hospital
Board of Directors
Strategic Planning Advisor
Chief Executive Officer
Legal Counsel
President
Cost Containment Staff
Executive Administrative Director
Executive Medical Director
Director of X-Ray & Laboratory Services
Director of Pharmacy
Chief Physician
Director of Personnel
Director of Admissions
Director of Nutrition & Food Services
Director of Patient & Public Relations
Director of Accounting
Director of Surgery
Director of Outpatient Services

5. Organization’s Major Elements
Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.
Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
Responsibility is the obligation you have to perform the tasks assigned to you
Accountability managers must report and justify work results to managers above them

6. Key elements in org.structure
Work specialization: To what degree are tasks subdivided into separate jobs?
Departmentalization: On what basis will jobs be grouped together? By function, product, customer, By territory…
Chain of command: To whom individuals and groups report?
Span of control: How many individuals can a manager direct? Important factors: Required Contact. Degree of Specialization. Ability to Communicate…
Centralization and decentralization: Where does decision-making authority lie? Centralized Authority: important decisions are made by higher-level managers. Decentralized Authority: important decisions are made by middle-level and supervisory-level managers
Formalization: To what degree will there be rules to direct employees and managers. Refers to the extent to which expectations regarding the means and ends of work are specified and written

7. Contingency Design Mechanistic vs. Organic
Is the process of fitting the organization to the environment.
Factors Affecting contingency Design are:
Mechanistic vs. Organic
Differentiation vs. Integration
Size
Technology
Life Cycle

8. Characteristics of Mechanistic & Organic Organizations
Centralized hierarchy of authority
Decentralized hierarchy of authority
Many rules and procedures
Few rules and procedures
Specialized tasks
Shared tasks
Formalized communication
Informal communication
Few teams or task forces
Many teams or task forces
Narrow span of control, taller structure
Wider span of control, flatter structure

9. Types of Organizational Structures
Simple Structure
Functional Structure
Divisional Structure
Conglomerate Structure
Hybrid Structure
Matrix Structure
Team-Based Structure
Network Structure

10. Advantages of Matrix Organization
Efficient use or resources
Flexibility in conditions of change and uncertainty
Technical excellence
Freeing top management for long-run planning
Improving motivation and commitment
Providing opportunities for personal development

11. Organizational Life Cycle
Birth Stage the nonbureaucratic stage in which the organization is created
Youth Stage the organization is in a prebureaucratic stage, a stage of growth and expansion
Midlife Stage the organization becomes bureaucratic, a period of growth evolving into stability
Maturity Stage the organization becomes very bureaucratic, large and mechanistic
Consequences of Structural Deficiencies:
Motivation and morale can be affected
Decision making can be slow and of poor quality
Conflict and lack of coordination can occur
Failure to respond to changing circumstances
Rising costs